Over the past several weeks/months, Charter (CHTR) has been named as a potential target for a whole host of companies, including Verizon Communications (VZ), Comcast (CMCSA), Altice USA (ATUS)/Altice [of the Netherlands], and Softbank Group [of Japan]/Sprint (S). According to our fixed-income analysts (Nicole Black in investment-grade/Davis Hebert in high-yield), Charter’s total incurrence test caps its incremental debt capacity at $30.8 billion, making any levered suitor dependent on a lot of equity to fund a deal of this size.